VOO vs QQQM: which is better for long-term investing?
VOO and QQQM are two of the most popular funds for long-term investors. They both own big U.S. companies, but they're built very differently.
Key points
- VOO owns about 500 large U.S. companies across every industry.
- QQQM owns the 100 biggest non-financial companies on the Nasdaq. It leans heavily on tech.
- QQQM has grown faster over the last 10 years, but it has also dropped much harder in bad years.
The quick comparison
| VOO | QQQM | |
|---|---|---|
| Follows | S&P 500 | Nasdaq-100 |
| Number of companies | About 500 | About 100 |
| Yearly fee | 0.03% | 0.15% |
| Dividend yield (approx.) | 1.3% | 0.6% |
| 10-year yearly return (approx.) | 13.5% | 19%* |
| Typical swings | Medium | High |
*QQQM started in 2020. Its 10-year figure uses the Nasdaq-100 record, the same list QQQ follows. Returns are rounded estimates through mid-2026.
What does each fund own?
VOO follows the S&P 500. That includes tech, but also banks, health care, stores, energy and more. When one industry has a bad year, the others can soften the blow.
QQQM follows the Nasdaq-100. Tech companies make up a big share of it. It leaves out banks and other financial companies.
Both funds own many of the same giant companies. So owning both adds less variety than you might think.
Returns: QQQM has won lately
Tech had an amazing decade, so QQQM's list grew faster. Here's what $200 every two weeks could have grown to at each fund's approximate 10-year rate, starting with $1,000:
| After | VOO (13.5%) | QQQM (19%) |
|---|---|---|
| 30 years | $1.83 million | $5.66 million |
That gap looks huge. But it assumes the last 10 years repeat for 30 more. That's unlikely for either fund. Treat it as a "what if," not a forecast.
Risk: QQQM drops harder
The Nasdaq-100 has had some painful years. From 2000 to 2002, it fell more than 80%. In 2022, it fell about a third, while the S&P 500 fell about a fifth.
If you'd panic and sell in a crash, a steadier fund may serve you better. The best fund is one you can hold through bad years.
Fees and dividends
VOO costs 0.03% a year, or $3 per $10,000. QQQM costs 0.15%, or $15 per $10,000. Both are low.
VOO pays a bit more in dividends. Neither is a big income fund. If dividends are your goal, see our guide on switching to dividend funds.
Which one fits you?
- Pick VOO if you want broad, steady, very low-cost exposure to the U.S. market.
- Pick QQQM if you believe in big tech's future and can handle bigger drops.
- Mix them if you want a core of VOO with a smaller slice of QQQM for extra growth.
Put VOO and QQQM head to head with your own paycheck amount.
Compare fundsQuick answers
Is QQQM better than VOO?
QQQM grew faster over the last 10 years, but it's less spread out and has had bigger drops. VOO is broader and cheaper. Which is better depends on how much risk you can handle.
Should I own both VOO and QQQM?
You can, but they share many of the same big companies. Many investors use VOO as their main fund and add a smaller amount of QQQM.
What's the difference between QQQ and QQQM?
They follow the same Nasdaq-100 list. QQQM has a lower yearly fee (0.15% vs 0.20%), so many long-term investors prefer it.
Which pays more dividends, VOO or QQQM?
VOO usually pays more, around 1.3% a year compared with about 0.6% for QQQM.
Sources
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This article is for learning only. It is not financial, tax or legal advice. Example returns are not promises. Talk to a licensed professional about your own situation.